Motto Mortgage

Can you provide detailed explanations for each of the 4 franchisor-initiated litigation cases, including the nature of disputes, outcomes, and current status of the 4 pending cases?

What specific performance or compliance issues have driven the 14.0% termination rate, and what are the most frequently cited termination causes among the 25 listed in the agreement?

Given that 76 units closed in 2025 alone, what was the primary cause of closures: franchisee insolvency, market conditions, franchisor directives, or other factors?

The system lost 57 units in one year (25% decline). What strategic or operational changes is the franchisor implementing to stabilize or reverse this trend?

Why does the Transfer Fee of $2,500 fall significantly below industry norms for this category, and are there conditions or circumstances under which this fee could increase?

The non-compete restriction of only 1 year and 5 miles is substantially below industry standards (2 years / 21.3-25 miles). What is the franchisor's rationale for this narrower restriction?

Only 2 units were transferred in 2025 compared to 32 terminations and 76 closures. Are there barriers preventing franchisees from selling their units, or is the market demand for Motto Mortgage franchises weak?

What support, training, or financial assistance does the franchisor provide to struggling franchisees before initiating termination proceedings?

Can you clarify the 25 termination causes listed in the franchise agreement and provide examples of situations where each cause has been invoked?

The System Health score is 0/100. What metrics or data points comprise this score, and what deficiencies does it reflect?

Are there any class action lawsuits or regulatory investigations pending against the franchisor that might not appear in individual litigation case counts?

Given the high turnover rate, what is the typical time to profitability for a new Motto Mortgage franchise, and what percentage of franchisees achieve breakeven within the initial 7-year term?

The Support & Training score of 75 falls below the typical range (78.0-94.0). What specific training or ongoing support gaps does this reflect?

Can you provide Item 19 financial performance data (Franchise Disclosure Document) showing average unit volumes, revenues, or profitability for operating franchisees?

What are the personal guarantee terms, and under what specific circumstances could the franchisor pursue personal assets of owners beyond the franchise business?

In the past 3 years, how many franchisees have attempted to renew their agreements after the initial term, and how many renewals were denied or offered with materially different terms?

The Risk Factors score is 22/100 (well below typical range of 48.0-72.0). What are the primary identified risk factors affecting this franchise system?

Are there any geographic areas or regions where Motto Mortgage franchise performance is significantly better or worse than the system average, and would territory selection affect viability?